Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
Forensic and investigation services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
Mergers and acquisitions
Globalisation and company growth ambitions are driving an increase in M&A activity worldwide. We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer- term strategic goals.
Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements. At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
Innovation and investment incentives
Dynamic businesses must continually innovate to maintain competitiveness, evolve and grow. Valuable tax reliefs are available to support innovative activities, irrespective of your tax profile.
Private client services
Our solutions include dealing with emigration and tax mitigation on the income and capital growth of overseas assets.
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
Tax policies are constantly evolving and there are a number of complex changes on the horizon that could significantly affect your business.
In an ever-changing tax landscape, we are pleased to share the latest and important regulations and tax policies taking place in Vietnam that will affect your globally mobile employees.
- determining which expatriates are subject to compulsory social insurance contributions
- changes to Personal Income Tax (PIT)
- increasing basic salary from 1 July 2019.
Determining which expatriates are subject to compulsory social insurance contributions
On 18 March 2019, the Vietnam Ministry of Labour, War Invalids and Social Affairs provided guidance under the Official Letter 1064/LDTBXH-BHXH for individuals who are subject to compulsory social insurance under the provisions of Decree No.143/2018/ND-CP.
According to this guideline, expatriate workers are subject to compulsory social insurance only when following conditions are satisfied:
- They have a work permit, practice certificate or a practice license issued by a competent Vietnamese authority.
- They have an indefinite term labour contract or a contract lasting a year or more with employers in Vietnam.
- They are under 60 years of age for male and under 55 for female.
- They are not subject to an internal transfer within the enterprise as stipulated in Clause 1, Article 3 of Decree No. 11/2016 / ND-CP.
This provision gives more specific guidance to authorities in the application of new regulations on compulsory insurance participation for expatriates.
Changes to Personal Income Tax (PIT)
PIT for share transfer of individuals in joint stock companies (JSC) – The Vietnamese General Department of Taxation issued Official Letter No. 1211/TCT-DNNCN on 4 April 2019 guiding tax policies for shares transfer of individuals in JSC. Based on the PIT regulations, enterprise law and securities law, ‘share’ is a form of ‘stock’. This means that transferring capital in a JSC is defined as income from securities transfer and individuals must declare and pay PIT at 0.1% rate.
Guidance on allocation of reduced PIT in 2018 of employees in economic zones – The General Department of Taxation also issued Official Letter No. 1285/TCT-DNNCN on 8 April 2019 guiding how to determine the PIT reduction of employees working in an Economic Zone (EZ) during PIT finalisation 2018.
In 2018, the regulation on 50% PIT reduction for employees working in an economic zone was abolished under Decree No. 82/2018/ND-CP. This means that employees in the economic zone are only entitled to a reduction of PIT from 1 January 2018 to 9 July 2018, no reduction is applicable after this date. Employees working in an economic zone will now have to pay 100% PIT and are no longer able to benefit from the same incentives as before.
The official letter guides how to calculate the PIT amount to be reduced in 2018 for employees working in an Economic Zone as follows:
- Total PIT payable in a year is based on taxable income from wages and salaries arising in the tax calculation year in accordance with the law on PIT.
- Total taxable income in the tax year is taxable income from wages and personal salaries, including income received inside and outside an economic zone.
- During implementation, if any problems arise in determining the criteria in the allocation formula, enterprises may consider getting confirmation from local tax authorities before implementing in order to mitigate future risk.
Increasing basic salary from 1 July 2019
The Vietnam Government has recently issued ‘Decree No. 38/2019/ND-CP’. The Decree (which regulates the increase of basic salary for civil servants, officials and armed forces) took effect from 1 July 2019 and replaces Decree No. 72/2018/ND-CP.
Businesses should pay attention to adjusting a new insurance cap, minimum wages and benefits based on the new basic salary to ensure compliance with the law.
The full June 2019 tax update from Grant Thornton Vietnam is avaialable in English, Vietnamese and Japanese.
Read more insights on tax changes affecting internationally mobile employees.